SAMUDERA Shipping Line Ltd and Pacific Carriers Ltd (PCL) both reported higher net profits for the year to 31 December.

Samudera's net profits rose 21 per cent to $20.5 million, while PCL posted a 15 per cent rise in net profits to $38 million. Turnover grew 16 per cent to $367 million, due mainly to an increase in the volume of established and new routes, Samudera said yesterday. It added that more laden cargo into Indonesia and Thailand compared to 1998, and the stronger US dollar vis-a-vis the Singapore dollar in the first half of 1999 also contributed to the growth in turnover.

Earnings per share increased from 4.02 to 4.64 cents, while net tangible assets per share rose from 22.06 to 30.99 cents. Samudera also announced a dividend of 0.6 cents per share less tax.

For the current year, it said the volume of containerised cargo from South-east Asia to the US and Europe is expected to remain strong. The import of containerised cargo to the region, mainly to Indonesia and Thailand, is also expected to continue to grow.

The group said it would further explore opportunities to expand its business in other regions, and added that some of these feasibility studies are in their final stages.

Meanwhile, PCL yesterday said its 15 per cent growth in turnover to $134 million was largely due to the strong performance of its feeder and breakbulk liner services division. This more than offset poorer conditions in the tanker market as a result of escalating oil prices and falling refining margins. Earnings per share was 12.7 cents, up from the previous year's 11.02 cents. Net tangible assets per share rose eight cents to $1.07. PCL declared a dividend of 6 cents per share tax exempt.

This year, PCL expects world seaborne trade to pick up further following its marginal increase in 1999. "The year started with a strong recovery in freight rates with both dry bulk and tanker rates showing promising increases, which are expected to continue into summer," it said. But it warned that "increase in global newbuilding deliveries and firming oil prices" could change this outlook.

Samudera net earnings up 21% to $20m while PCL profit improves 15% to $38m
By Eugene Low